Teknor Apex to shut down rubber division

Pawtucket, Rhode Island -- Teknor Apex Co. will phase out its rubber division over the next several months leading to the loss of about 150 jobs.

Teknor Apex president Jonathan Fain said the rubber division had been "operating at a loss for some time", because rubber manufacturing had moved overseas and new materials replaced rubber products.

"In recent months, the market has worsened. The high cost of oil has had a major impact on the car market," Fain said.

He said the performance of Teknor´s other divisions had offset the rubber division´s losses but "with the downward pressures growing, we saw no opportunity to turn the division around".

The unit currently employs about 190 workers -- 110 in Rhode Island and about 80 at the firm´s plant in Brownsville, Tennessee.

Teknor Apex estimated a loss of 85 jobs in Rhode Island and 65 in Tennessee because of a voluntary early retirement incentive and transfer opportunities.

From Rubber & Plastics News (A Crain publication)